Gold dropped sharply on Wednesday and broke important support levels opening the doors for further declines. The value of the ounce lost almost $30 and ended hovering around $1,220.00. A stronger US dollar amid some increase in speculations (still low) of a rate hike sooner-than-expected by the Federal Reserve pushed the yellow metal to the downside. Gold broke below previous March lows located at $1,225 and bottomed at $1,215.40 the lowest since February 26. It consolidates around $1,220 below the level it had before the FOMC statement. XUA/USD technical outlook “The daily chart shows that the technical indicators head sharply lower below their mid-lines, while the price extended sharply below a now flat 20 SMA. Shorter term, the 4 hours chart also favors a downward continuation, with the price now below its moving averages and the technical indicators near oversold levels, also supporting some further slides for the rest of the week”, said Valeria Bednarik, Chief Analyst at FXStreet. Support levels: 1,220.90 1,211,40 1,203.50 Resistance levels: 1,225.50 1,233.40 1,245.60 For more information, read our latest forex news.